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2026 - 2027 I PY27 NH Fuel Assistance Program (FAP) Procedures Manual 25 Self Employment

Income must be documented on an annual basis for all self-employed individuals. If an individual has not been self-employed for a full year, the total number of months from the start of the self-employment will be used to calculate income. Self-employed individuals must provide their most current federal tax return (Form 1040) along with all appropriate supporting schedules/forms to document their income from January 1 through December 31. After April 15 each year, the prior year tax return should be provided unless there is a documented copy of the tax filing extension.

• For sole proprietorships, Schedule C-EZ or Schedule C is required, with all attendant supporting forms such as Form 8829-Expenses for Business Use of Your Home and Form 4562-Depreciation and Amortization.

• For partnerships, Form 1065 is required, with all attendant Schedule K-1 forms and any other supporting forms such as Form 4562-Depreciation and Amortization and any statements for aggregated other deductions.

• For corporations, Form 1120 or 1120S is required, with all attendant supporting forms and schedules such as Form 1125A-Cost of Goods Sold, Schedule K-1 showing shareholders’ percentage of ownership in the corporation, Form 4562-Depreciation and Amortization, Form 8825-Rental Real Estate Income and Expenses of a Partnership or an S Corporation, and any statements for aggregated other deductions.

• For farm/agricultural businesses, Schedule F is required, with all attendant forms and schedules such as Form 4562- Depreciation and Amortization. Additional supporting documents may be requested upon review of the above documents to clarify the information represented.

There are some expenses that are not allowable for FAP. These may be included on the tax return but should not be entered as an expense into ECOS. Because of this, the total net profit or loss in ECOS may not match the total net profit or loss on the tax form. This includes:

• Depreciation (listed on Schedule C, Part II, item 13 OR on Form 4562) • Amortization (on Form 4562) • Business Use of Home (on Schedule C, this is in Part II, item 30) If the business address matches the home address on the application, this may indicate that some of the dwelling is used for business purposes. Staff should verify how many rooms, if any, are utilized for business purposes. This number of rooms should be subtracted from the FAP application.